The National Credit Union Administration (NCUA) is selling as much as $1.2 billion of its corporate bailout bonds this week backed by student loan assets owned by the failed corporate credit unions.

The new offering of NCUA Guaranteed Notes, supported by federally guaranteed loans issued under the Federal Family Education Loan Program and private student loan-backed bonds, represents a departure from the recent offerings which were all backed by residential or commercial mortgages.

NCUA has sold more than $16 billion of the bonds so far that are derived from the cash flows on troubled bonds owned by the five failed corporates, U.S. Central FCU, WesCorp FCU, Members United Corporate FCU, Southwest Corporate FCU and Constitution Corporate FCU. The troubled bonds themselves will continue to be held in trust by NCUA.

This week’s offering, like all the others, is being managed by Barclays Capital.

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